2018 preliminary guidance of $3.00 - $3.50 net income per diluted
share and $3.23 - $3.73 adjusted net income per diluted share.
Preliminary guidance has been developed with conservative views of
medical cost trends, Marketplace pricing adequacy, and the ultimate
outcome of numerous profit improvement initiatives. Preliminary
guidance will be updated once the Company has the benefit of first
quarter earnings and further insight into the execution of these
profit improvement initiatives.

Molina Healthcare, Inc. (NYSE: MOH) today reported its financial results
for the fourth quarter and year ended December 31, 2017, and provided
its preliminary guidance for fiscal year 2018.

"Our fourth quarter results are emblematic of the significant transition
Molina is undertaking," said Joe Zubretsky, president and CEO. "The
disappointment of contract losses and related goodwill charges,
continued restructuring costs, and catch up adjustments to unacceptable
Marketplace results are legacies of the past. Looking forward, the core
business results showed improvement quarter over quarter, and we took
steps to strengthen the quality of the balance sheet, all of which serve
as a solid platform to achieve our margin recovery and sustainability
plan we outlined for investors last month. Medical cost control,
administrative cost discipline, and capital strength remain at the fore
of our plan."

G&A ratio represents general and administrative expenses as a
percentage of total revenue. Net (loss) profit margin represents net
(loss) income as a percentage of total revenue.

Summary of Significant Items Affecting 2017 Financial Results

Three Months Ended December 31,

Year Ended December 31,

(In millions, except per diluted share amounts)

Amount

Per DilutedShare (1)

Amount

Per DilutedShare (1)

Termination of CSR subsidy payments for the fourth quarter of 2017

$

73

$

0.81

$

73

$

0.82

Marketplace adjustments for CSR subsidies, risk adjustment and
medical loss ratio (MLR) floor liabilities for January through
September 2017 dates of service

50

0.55

N/A

N/A

Marketplace adjustments related to risk adjustment, CSR subsidies,
and other items for 2016 dates of service

-

-

47

0.52

Change in Marketplace premium deficiency reserve for 2017 dates of
service

(70

)

(0.77

)

(30

)

(0.33

)

Impairment losses

269

3.22

470

6.01

Restructuring and separation costs

73

0.81

234

2.86

Loss on debt extinguishment

14

0.24

14

0.24

Fee received for terminated Medicare acquisition

-

-

(75

)

(0.84

)

$

409

$

4.86

$

733

$

9.28

__________________

(1)

Amounts shown are before considering revaluation of related deferred
tax assets as a result of the Tax Cuts and Jobs Act of 2017, as
applicable, and which is described further below. Except for certain
items that are not deductible for tax purposes, per diluted share
amounts are generally calculated at a statutory income tax rate of
37%, which is in excess of the effective tax rate recorded in our
consolidated statements of operations.

Fourth Quarter 2017 Compared With Third Quarter 2017

Developments in our business during 2017 limit the value of comparisons
to 2016 performance. The Company believes that the comparison of 2017
fourth quarter performance with 2017 third quarter performance provides
the most meaningful context for fourth quarter results.

Loss before income tax benefit for the fourth quarter of 2017 was $316
million, compared with a loss before income tax benefit of $113 million
for the third quarter of 2017. Net loss per diluted share was $4.59 for
the fourth quarter of 2017 compared with net loss per diluted share of
$1.70 reported for the third quarter of 2017.

Despite the loss reported for the quarter, the performance of core
operations and overall administrative cost efficiency improved in the
fourth quarter when compared with the third quarter of 2017.

Marketplace performance deteriorated due to normal seasonality and other
matters discussed below. The Company has increased premium rates and
reduced its Marketplace presence effective January 1, 2018 as part of
its overall program to improve profitability.

The medical care ratio for the Company's Medicaid and Medicare
programs combined ("core operations") declined to 88.8% in the fourth
quarter of 2017, from 90.9% in the third quarter of 2017.

The general and administrative expense ratio declined to 7.4% in the
fourth quarter of 2017 from 7.6% in the third quarter of 2017.

The decision by the federal government to cease payment of Marketplace
CSR subsidies in the fourth quarter of 2017 increased loss before
income tax benefit for the quarter by approximately $73 million ($0.81
per diluted share). Despite its decision to record a charge in the
fourth quarter for this item, the Company believes that it is legally
entitled to these federal payments and will pursue all available means
to collect them.

Increases to Marketplace risk transfer and CSR liabilities related to
the first three quarters of 2017 increased loss before income tax
benefit by approximately $50 million ($0.55 per diluted share) in the
fourth quarter.

The reduction of the Marketplace-related premium deficiency reserve to
zero as of December 31, 2017 reduced loss before income tax benefit by
$70 million ($0.77 per diluted share) in the fourth quarter.

Non-cash goodwill and intangible asset impairment charges of $269
million ($3.22 per diluted share) were incurred at the Florida,
Illinois, and New Mexico health plans in the fourth quarter.

Approximately $73 million ($0.81 per diluted share) of restructuring
costs were recognized in the fourth quarter.

Approximately $14 million ($0.24 per diluted share) of non-cash costs
were recognized in the fourth quarter in connection with the issuance
of our common shares in exchange for $141 million face value of our
1.625% convertible senior notes.

Income Tax (Benefit) Expense

The revaluation of deferred tax assets in connection with the Tax
Cuts and Jobs Act of 2017 resulted in $54 million additional income
tax expense in the fourth quarter and year ended December 31, 2017
($0.94 per diluted share and $0.95 per diluted share, respectively). In
addition, the effective tax benefit for 2017 is less than the statutory
tax benefit due to the relatively large amount of reported expenses that
are not deductible for tax purposes, primarily relating to goodwill
impairment losses and separation costs.

2018 Preliminary Guidance

The Company has offered guidance on a preliminary basis because of the
inherent uncertainty around achievement and the timing of its numerous
profit improvement initiatives. While those initiatives extend across
the various dimensions of managed care fundamentals, many are in the
early stages of development and implementation.

Therefore, the Company's guidance should be viewed as a preliminary
estimate of what it expects to achieve until the profit improvement
initiatives manifest themselves in the earnings stream. Once it has the
benefit of first quarter earnings and further insight into the execution
of the profit improvement initiatives, the Company will be able to
provide a firmer view of 2018 guidance.

To provide for an appropriate amount of execution risk, the Company's
preliminary guidance has been developed with appropriately conservative
views of:

Medical cost baseline in 2017;

Medical cost trend for 2018;

Potential rate increases and retained amounts of revenue at risk; and

The turnaround of the Marketplace business until the achievement of
the margins implicit in 2018 pricing is observed.

The following table summarizes 2018 Preliminary Guidance (1):

Premium revenue

~ $17.5B

Service revenue

~ $525M

Premium tax revenue

~ $410M

Health insurer fees reimbursed

~ $295M

Investment income and other revenue

~ $85M

Total revenue

~$18.8B

Medical care costs

~ $15.6B

Medical care ratio (2)

~ 89%

Cost of service revenue

~ $480M

General and administrative expenses

~ $1.4B

G&A ratio (3)

~ 7.3%

Premium tax expenses

~ $410M

Health insurer fees

~ $310M

Depreciation and amortization

~ $115M

Interest expense and other income

~ $125M

Income before income taxes

$355M - $400M

Net income

$202M - $236M

EBITDA (4)

$632M - $676M

Effective tax rate

41% - 43%

Net profit margin (3)

1.1% - 1.3%

Diluted weighted average shares

~ 67.3M

Net income per share

$3.00 - $3.50

Adjusted net income per share (4)

$3.23 - $3.73

End-of-year Marketplace membership

303,000

End-of-year Non-Marketplace membership

3,738,000

__________________

(1)

All amounts are estimates; actual results may differ materially. See
our risk factors as discussed in our Form 10-K and other filings and
the statements below in this press release after the heading "Safe
Harbor Statement under the Private Securities Litigation Reform Act
of 1995."

G&A expense ratio represents general and administrative expenses as
a percentage of total revenue. Net profit margin represents net
income as a percentage of total revenue.

(4)

See reconciliation of non-GAAP financial measures at the end of this
release.

Conference Call

Management will host a conference call and webcast to discuss Molina
Healthcare's fourth quarter and year-end 2017 results at 8:30 a.m.
Eastern time on Tuesday, February 13, 2018. The number to call for the
interactive teleconference is (888) 317-6003 and entering confirmation
number 5278774. A telephonic replay of the conference call will be
available through Tuesday, February 20, 2018, by dialing (877) 344-7529
and entering confirmation number 10116226. A live audio broadcast of
Molina Healthcare's conference call will be available on our website, molinahealthcare.com.
A 30-day online replay will be available approximately an hour following
the conclusion of the live broadcast.

About Molina Healthcare

Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health
care services under the Medicaid and Medicare programs and through the
state insurance marketplaces. Through our health plans operating in 13
states across the nation and in the Commonwealth of Puerto Rico, Molina
serves approximately 4.5 million members. For more information about
Molina Healthcare, please visit our website at molinahealthcare.com.

Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This earnings release contains "forward-looking
statements" regarding our 2018 preliminary guidance, as well as our
plans, expectations, and anticipated future events. Actual results could
differ materially due to numerous known and unknown risks and
uncertainties. Those known risks and uncertainties include, but are not
limited to, the following:

the success of our profit improvement and maintenance initiatives,
including the timing and amounts of the benefits realized, and
administrative savings achieved;

the numerous political and market-based uncertainties associated
with the Affordable Care Act (the "ACA") or "Obamacare;"

the market dynamics surrounding the ACA Marketplaces, including but
not limited to uncertainties associated with risk transfer
requirements, the potential for disproportionate enrollment of higher
acuity members, the discontinuation of premium tax credits, the
adequacy of agreed rates, and potential disruption associated with
market withdrawal from Utah, Wisconsin, or other states;

subsequent adjustments to reported premium revenue based upon
subsequent developments or new information, including changes to
estimated amounts payable or receivable related to Marketplace risk
adjustment/risk transfer, risk corridors, and reinsurance;

effective management of our medical costs;

our ability to predict with a reasonable degree of accuracy
utilization rates, including utilization rates associated with
seasonal flu patterns or other newly emergent diseases;

significant budget pressures on state governments and their
potential inability to maintain current rates, to implement expected
rate increases, or to maintain existing benefit packages or membership
eligibility thresholds or criteria;

the full reimbursement of the ACA health insurer fee, or HIF;

the success of our efforts to retain existing government contracts,
including those in Florida, New Mexico, Puerto Rico, Texas, and
Washington, including the success of any protest filings;

our ability to consummate and realize benefits from acquisitions or
divestitures;

our receipt of adequate premium rates to support increasing
pharmacy costs, including costs associated with specialty drugs and
costs resulting from formulary changes that allow the option of
higher-priced non-generic drugs;

our ability to operate profitably in an environment where the trend
in premium rate increases lags behind the trend in increasing medical
costs;

the Medicaid expansion cost corridors in California, New Mexico,
and Washington, and any other retroactive adjustment to revenue where
methodologies and procedures are subject to interpretation or
dependent upon information about the health status of participants
other than Molina members;

the interpretation and implementation of at-risk premium rules and
state contract performance requirements regarding the achievement of
certain quality measures, and our ability to recognize revenue amounts
associated therewith;

cyber-attacks or other privacy or data security incidents resulting
in an inadvertent unauthorized disclosure of protected health
information;

the success of our health plan in Puerto Rico, including the
resolution of the Puerto Rico debt crisis, payment of all amounts due
under our Medicaid contract, the effect of the PROMESA law, the impact
of Hurricane Maria and our efforts to better manage the health care
costs of our Puerto Rico health plan;

the success and renewal of our duals demonstration programs in
California, Illinois, Michigan, Ohio, South Carolina, and Texas;

the accurate estimation of incurred but not reported or paid
medical costs across our health plans;

efforts by states to recoup previously paid and recognized premium
amounts;

complications, member confusion, or enrollment backlogs related to
the annual renewal of Medicaid coverage;

government audits and reviews, or potential investigations, and any
fine, sanction, enrollment freeze, monitoring program, or premium
recovery that may result therefrom;

changes with respect to our provider contracts and the loss of
providers;

approval by state regulators of dividends and distributions by our
health plan subsidiaries;

changes in funding under our contracts as a result of regulatory
changes, programmatic adjustments, or other reforms;

high dollar claims related to catastrophic illness;

the favorable resolution of litigation, arbitration, or
administrative proceedings;

the relatively small number of states in which we operate health
plans, including the greater scale and revenues of our California,
Ohio, Texas, and Washington health plans;

the availability of adequate financing on acceptable terms to fund
and capitalize our expansion and growth, repay our outstanding
indebtedness at maturity and meet our liquidity needs, including the
interest expense and other costs associated with such financing;

our failure to comply with the financial or other covenants in our
credit agreement or the indentures governing our outstanding notes;

the sufficiency of our funds on hand to pay the amounts due upon
conversion or maturity of our outstanding notes;

the failure of a state in which we operate to renew its federal
Medicaid waiver;

increases in government surcharges, taxes, and assessments,
including but not limited to the deductibility of certain compensation
costs;

newly emergent viruses or widespread epidemics, public catastrophes
or terrorist attacks, and associated public alarm;

increasing competition and consolidation in the Medicaid industry;

and numerous other risk factors, including those discussed in our
periodic reports and filings with the Securities and Exchange
Commission. These reports can be accessed under the investor relations
tab of our website or on the SEC's website at sec.gov.
Given these risks and uncertainties, we can give no assurances that our
forward-looking statements will prove to be accurate, or that any other
results or events projected or contemplated by our forward-looking
statements will in fact occur, and we caution investors not to place
undue reliance on these statements. All forward-looking statements in
this release represent our judgment as of February 12, 2018, and we
disclaim any obligation to update any forward-looking statements to
conform the statement to actual results or changes in our expectations.

MOLINA HEALTHCARE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

(Dollar amounts in millions, except per-share amounts)

Revenue:

Premium revenue (1)

$

4,689

$

4,190

$

18,854

$

16,445

Service revenue

131

131

521

539

Premium tax revenue

107

123

438

468

Health insurer fees reimbursed (1)

-

81

-

292

Investment income and other revenue

22

9

70

38

Total revenue

4,949

4,534

19,883

17,782

Operating expenses:

Medical care costs

4,251

3,844

17,073

14,774

Cost of service revenue

123

123

492

485

General and administrative expenses

367

359

1,594

1,393

Premium tax expenses

107

123

438

468

Health insurer fees

-

54

-

217

Depreciation and amortization

28

37

137

139

Impairment losses

269

-

470

-

Restructuring and separation costs

73

-

234

-

Total operating expenses

5,218

4,540

20,438

17,476

Operating (loss) income

(269

)

(6

)

(555

)

306

Other expenses, net:

Interest expense

33

25

118

101

Other expense (income), net

14

-

(61

)

-

Total other expenses, net

47

25

57

101

(Loss) income before income tax (benefit) expense

(316

)

(31

)

(612

)

205

Income tax (benefit) expense

(54

)

16

(100

)

153

Net (loss) income

$

(262

)

$

(47

)

$

(512

)

$

52

Net (loss) income per diluted share

$

(4.59

)

$

(0.85

)

$

(9.07

)

$

0.92

Diluted weighted average shares outstanding

57.1

55.6

56.5

56.3

Operating Statistics:

Medical care ratio

90.7

%

91.7

%

90.6

%

89.8

%

G&A ratio

7.4

%

7.9

%

8.0

%

7.8

%

Premium tax ratio

2.2

%

2.9

%

2.3

%

2.8

%

Effective income tax (benefit) expense rate

(17.2

)%

54.5

%

(16.4

)%

74.8

%

Net (loss) profit margin

(5.3

)%

(1.0

)%

(2.6

)%

0.3

%

__________________

(1)

The Centers for Medicare and Medicaid Services (CMS) incorporates
the Health Insurer Fee in our Medicare and Marketplace premium
rates. We have therefore reclassified such amounts to premium
revenue, from health insurer fees reimbursed, for all applicable
periods presented.

The following tables provide the details of our medical care costs
for the periods indicated:

Three Months Ended December 31,

2017

2016

Amount

PMPM

% ofTotal

Amount

PMPM

% ofTotal

Fee for service

$

3,052

$

226.66

71.8

%

$

2,837

$

223.43

73.8

%

Pharmacy

659

48.88

15.4

592

46.57

15.4

Capitation

338

25.13

8.0

317

24.93

8.2

Direct delivery

11

0.80

0.3

23

1.80

0.6

Other

191

14.23

4.5

75

5.95

2.0

$

4,251

$

315.70

100.0

%

$

3,844

$

302.68

100.0

%

Year Ended December 31,

2017

2016

Amount

PMPM

% ofTotal

Amount

PMPM

% ofTotal

Fee for service

$

12,682

$

229.63

74.3

%

$

10,993

$

217.84

74.4

%

Pharmacy

2,563

46.40

15.0

2,213

43.84

15.0

Capitation

1,360

24.63

8.0

1,218

24.13

8.2

Direct delivery

73

1.33

0.4

78

1.55

0.5

Other

395

7.15

2.3

272

5.39

1.9

$

17,073

$

309.14

100.0

%

$

14,774

$

292.75

100.0

%

The following table provides the details of our medical claims and
benefits payable as of the dates indicated:

December 31,

2017

2016

Fee-for-service claims incurred but not paid (IBNP)

$

1,717

$

1,352

Pharmacy payable

112

112

Capitation payable

67

37

Other (1)

296

428

$

2,192

$

1,929

__________________

(1)

"Other" medical claims and benefits payable include amounts payable
to certain providers for which we act as an intermediary on behalf
of various state agencies without assuming financial risk. Such
receipts and payments do not impact our consolidated statements of
operations. As of December 31, 2017 and 2016, we had recorded
non-risk provider payables of approximately $122 million and $225
million, respectively.

MOLINA HEALTHCARE, INC.

UNAUDITED CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE

(Dollars in millions, except per-member amounts)

Our claims liability includes a provision for adverse claims deviation
based on historical experience and other factors including, but not
limited to, variations in claims payment patterns, changes in
utilization and cost trends, known outbreaks of disease, and large
claims. Our reserving methodology is consistently applied across all
periods presented. The amounts displayed for "Components of medical care
costs related to: Prior period" represent the amount by which our
original estimate of claims and benefits payable at the beginning of the
period was less (more) than the actual amount of the liability based on
information (principally the payment of claims) developed since that
liability was first reported. The following table presents the
components of the change in medical claims and benefits payable for the
periods indicated:

Year Ended December 31,

2017

2016

Medical claims and benefits payable, beginning balance

$

1,929

$

1,685

Components of medical care costs related to:

Current period

17,037

14,966

Prior period

36

(192

)

Total medical care costs

17,073

14,774

Change in non-risk provider payables

(106

)

58

Payments for medical care costs related to:

Current period

15,130

13,304

Prior period

1,574

1,284

Total paid

16,704

14,588

Medical claims and benefits payable, ending balance

$

2,192

$

1,929

Benefit from prior period as a percentage of:

Balance at beginning of period

(1.9

)%

11.4

%

Premium revenue, trailing twelve months

(0.2

)%

1.2

%

Medical care costs, trailing twelve months

(0.2

)%

1.3

%

Days in claims payable, fee for service (1)

54

47

__________________

(1)

Claims payable includes primarily IBNP. Additionally, it includes
certain fee-for-service payables reported in "Other" medical claims
and benefits payable amounting to $99 million and $94 million, as of
December 31, 2017 and 2016, respectively.

MOLINA HEALTHCARE, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES

We use non-GAAP financial measures as supplemental metrics in evaluating
our financial performance, making financing and business decisions, and
forecasting and planning for future periods. For these reasons,
management believes such measures are useful supplemental measures to
investors in comparing our performance to the performance of other
public companies in the health care industry. These non-GAAP financial
measures should be considered as supplements to, and not as substitutes
for or superior to, GAAP measures. See further information regarding
non-GAAP measures below the tables (in millions, except per diluted
share amounts).

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Net (loss) income

$(262

)

$(47

)

$(512

)

$52

Adjustments:

Depreciation, and amortization of intangible assets and capitalized
software

36

43

165

161

Interest expense

33

25

118

101

Income tax (benefit) expense

(54

)

16

(100

)

153

EBITDA

$(247

)

$37

$(329

)

$467

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

Amount

PerDilutedshare

Amount

PerDilutedshare

Amount

PerDilutedshare

Amount

PerDilutedshare

Net (loss) income

$

(262

)

$

(4.59

)

$

(47

)

$

(0.85

)

$

(512

)

$

(9.07

)

$

52

$

0.92

Adjustment:

Amortization of intangible assets

6

0.11

8

0.16

30

0.55

32

0.57

Income tax effect (1)

(2

)

(0.04

)

(3

)

(0.06

)

(11

)

(0.20

)

(12

)

(0.21

)

Amortization of intangible assets, net of tax effect

4

0.07

5

0.10

19

0.35

20

0.36

Adjusted net (loss) income

$

(258

)

$

(4.52

)

$

(42

)

$

(0.75

)

$

(493

)

$

(8.72

)

$

72

$

1.28

__________________

(1)

Income tax effect of adjustment calculated at the blended federal
and state statutory tax rate of 37%.

The following are descriptions of the adjustments made to GAAP measures
used to calculate the non-GAAP measures used in this news release:

Earnings before interest, taxes, depreciation and amortization (EBITDA):
Net (loss) income (GAAP) less depreciation, and amortization of
intangible assets and capitalized software, interest expense and income
tax (benefit) expense. We believe that EBITDA is helpful in assessing
our ability to meet the cash demands of our operating units.

Adjusted net (loss) income: Net (loss) income (GAAP) less
amortization of intangible assets, net of income tax effect calculated
at the statutory tax rate of 37%. We believe that adjusted net (loss)
income is helpful in assessing our financial performance exclusive of
the non-cash impact of the amortization of purchased intangibles.

Adjusted net (loss) income per diluted share: Adjusted net (loss)
income divided by weighted average common shares outstanding on a fully
diluted basis.